As far as the political and legal elements are concerned, the entire movie industry is affected by the hazard of piracy which might possibly cause a negative effect on the general revenue of the film market. Having said that, copyright laws use protection to the film market in regards to discouraging piracy.
While the political and legal environment provides security to film makers, globalization and development of technological factors have actually increased legal challenges such as ease of piracy and breaching intellectual property rights.
It must be noted that movies become part of the entertainment industry while expense on any type of home entertainment is essentially an optional expenditure which is more or a high-end instead of a need. We look at the contrast of the GDP pattern with the pattern in need for movies, we can see that the 2 are not straight proportional suggesting that any modification in GDP growth does not necessarily bring about a modification in this particular entertainment.
As far as the social-cultural aspects are concerned, it ought to be noted that the 70% of IMAX viewers are between the ages of 19 and 56 which allows a lot of diversity when it concerns opting for a particular segment. Additionally with majority of the audiences being college or university students with an average household income of $70,000, the purchasing power of the target market reveals possibilities of increasing viewership.
With aspects such as 'moms and dads revealing an interest in their children's choice of home entertainment' and 'greater buying power in families' due to both moms and dads contributing towards the home earnings, we can see that the home entertainment company has a lot of potential for industry players.
While technological factors have contributed towards lowering the cost of entertainment with the intro of multimedia, truth based entertainment, home theatres, cable networks, the pressure on theatres has actually increased in term of making the theatre experience richer for customers in order to make it more attractive than viewing motion pictures at home. Furthermore, while developments have contributed towards the danger of 'piracy' they have also contributed towards ease of storing and distributing movies.